According to experts from the University of Cambridge, in less than two years the republic has increased its share in the world of cryptocurrencies mining six times.
Over the past two years, Kazakhstan has significantly increased the volume of bitcoin mining, ahead of Russia, according to a study by the University of Cambridge. According to experts, from September 2019 to April of this year, Kazakhstan increased its share in the world of cryptocurrencies mining six times (from 1.4% to 8.2%) and took the third place in terms of mining in the world. At the moment, the Russian Federation ranks fourth in terms of mining volumes in the world (6.8%).
Over the same period, China’s share fell from 75.5% to 46%, while the United States ranked second in the world in cryptocurrency mining, increasing its share from 4.1% to 16.8%. Iran is in fifth place (4.6%).
The decline in China’s share in the digital assets mining industry is due to strict restrictive measures that were introduced in the country in June. Four provinces of the PRC have completely banned the mining of cryptocurrencies. In July, the State Grid Corporation of China notified all regions of the country about the need to completely stop cryptocurrencies mining.
As a result, more than 70% of cryptocurrency mining enterprises were forced to stop working or they have moved to other countries. Also in June, mining hardware manufacturer Canaan opened its first mining farm. The company has located a data center in Kazakhstan.
On June 29, the President of Kazakhstan signed a law that introduces additional taxation for enterprises involved in the digital assets mining. According to the document, miners will have to pay an additional 1 tenge ($ 0.0023 at the current exchange rate as of July 16) for 1 kWh of electricity consumed when mining cryptocurrency. The new tax rules will come into force on January 1, 2022.